A project generates the following sequence of cash flows over two years:
Assume that cash flows after the second year grow at 2% annually in perpetuity,and the discount rate is 12%.What is the NPV of the project?
Definitions:
Annual Deposits
Regular sums of money placed into an account or investment over the course of a year.
Retirement Planning
The process of determining retirement income goals and the actions and decisions necessary to achieve those goals.
Withdraw
To remove funds from a bank account or to take back an offer or statement.
Annual Annuity
A fixed sum of money paid to someone each year, typically for the rest of their life or for a specified period.
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